Can I File for Bankruptcy Because My Business Failed?

Small businesses account for 95% of all U.S. companies, and unfortunately one-third of new businesses fail in the first two-to-four years. Many business owners are forced to consider bankruptcy as a result.

The first thing you should consider before filing for bankruptcy is your outstanding liability. Do you owe money for leasing equipment or a point-of-sale system? Business credit card debt? Will you have to buy your way out of the lease where your business is located?

Did you personally guarantee any loans that you took out? In other words, can your lender come after your car, home or savings accounts, in addition to any of the business assets? If so, you may need to file a personal bankruptcy to protect yourself.

The most common type of bankruptcy for small business owners is Chapter 7, the so-called “liquidation” bankruptcy. Whether that kind of bankruptcy will solve your business debt problems depends on a number of factors, including how your business is legally organized, whether or not you are a sole proprietor, and the number and kind of assets you are trying to protect, like your house. The skilled bankruptcy attorneys at our office can help you sort through these issues and determine what is best for you and your business.

Get yourself on the road to a fresh start. Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.

The choice of a lawyer is an important decision and should not be based solely upon advertisements.Past results afford no guarantee of future results and each case is different and is judged on its own merits. Costs and expenses will be advanced and reimbursed to us only if you recover.We are a debt relief agency. We proudly help people file for relief under the bankruptcy code.The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney regarding your specific situation. Please feel free to contact us. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.